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Which mortgage should we overpay?

5 replies

DangleDonkey · 16/04/2024 14:15

Hi all,
Our mortgage is in two halves as we ported over from our last house and took out a new mortgage for the extra borrowing.
We've just come to the end of one part of the mortgage. Previously, both rates were fairly similar (2.3% v 2.49% or something like that) and now the slightly higher one is quite a lot higher - 4.85%.
We'd like to overpay adhoc. Aside from the question of putting the money into a savings account with a higher interest rate (which is also something we're thinking about), would we be better off overpaying the 2.3% or the 4.85% one?
Both mortgages are for a very similar amount and we've got a good 30 years' term on each.
TIA x

OP posts:
fromtheshires · 16/04/2024 14:16

Pay the higher one. Always pay the higher one

bettybadger · 16/04/2024 14:17

Highest interest first

Rainbow1901 · 16/04/2024 14:17

Martin Lewis would say to pay the higher interest one. I would too!

DangleDonkey · 16/04/2024 15:16

Good to know there's a right answer - the higher one! Thank you 😊

OP posts:
BuyOrBake · 18/04/2024 19:06

100% the higher one

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